1. The classical economists believed that our economy was always at full employment or tending toward full employment. If our economy were operating below full employment, what would happen, according to the classical, to move the economy back toward full employment?

2. When the price level increases, the quantity of goods and services purchased declines. Why does this happen?

3. Explain the difference between the long-run aggregate supply curve and the short-run aggregate supply curve.

4. What were the major areas of disagreement between John Maynard Keynes and the classical economists?